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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $888. Selected data for the company's operations last year follow: Units in beginning inventory O Units produced 22,000 Units sold 19,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 170 Direct labor $ 480 Variable manufacturing overhead $ 63 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 1,000,000 Fixed selling and administrative $ 670,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $888. Selected data for the company's operations last year follow: Units in beginning inventory O Units produced 22,000 Units sold 19,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 170 Direct labor $ 480 Variable manufacturing overhead $ 63 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 1,000,000 Fixed selling and administrative $ 670,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $888. Selected data for the company's operations last year follow: Units in beginning inventory 0 Units produced 22,000 Units sold 19,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 170 Direct labor $ 480 Variable manufacturing overhead $ 63 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 1,000,000 Fixed selling and administrative $ 670,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Transcribed Image Text:Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $888. Selected data for the company's operations last year follow: Units in beginning inventory 0 Units produced 22,000 Units sold 19,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 170 Direct labor $ 480 Variable manufacturing overhead $ 63 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 1,000,000 Fixed selling and administrative $ 670,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
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